Hello All,
I see that amortization on Govt. bonds is not computed in a scientific manner even though i chose the amortization procedure (SAC Gross ) for my position indicator. I have detailed the behavior from an example i created in my test system. I read through help.sap links to understand the behavior of SAC but cannot relate this behavior to that calculation
FWZZ data:
Start date = 14.06.2012 ; End date = 13/06/2015
(Included)
Interest calc method = 360/360
Interest rate = 7.17% payable 6 months
Transaction data:
Settlement date = 04/12/2012 (Included)
Nominal value = 25,00,00,000.00
Payment Value = 245,500,000.00
Accrued interest paid at the start 14/06/2012 - 04/12/2012)
= 8,514,375.00
The premium / discount in this case is 4500000 to be amortized between 04/12/2012 - 13/06/2015
Since the interest calc method in FWZZ = 360/360; I
was expecting the amortization to be month as every month = 30 days
SAP's amortization values computed when i ran TPM1
with "Mid Year valuation without reset" are
Update Type = V301
After completion of maturity date the total
amortization should be zero but in my issue Amortization is not write off
fully. And it gives me a translation discount value at the time of executing
TPM18 for last day amortization along with last dat amortization value.where we don't have foreign currency valuation.
Translation discount- 1,944.86 (Update Type DBT_E019) for Ref please see the attachment....
Thanks.
Krishna Reddy T